Economy, Business And Markets

EDBI Restores Links With Seven Countries

EDBI Restores Links  With Seven Countries EDBI Restores Links  With Seven Countries

Referring to some of the most important achievements of the nuclear agreement between Iran and world powers, the head of international affairs at Export Development Bank of Iran said that banking deals with seven countries have been restored.

“Banking services for imports with South Korea, Japan, China, Italy, France, Germany and Turkey is now possible,” said Hamidreza Ma’boodi, adding that regarding exports “there are no limits to our loans in foreign exchange and we currently face no financing problems with countries that import from us”, reports Exim News.

Counting the “freeing of foreign exchange resources” and “easing of international trade” among the most important achievements of the nuclear deal for the banking system, he assured that payments to  European and non-European companies hit no brick walls, “and actually, international barriers related to the sanctions era have transformed into partial restrictions and residual problems.”

Noting that most of the residual restrictions go back to the more recent international regulatory areas such as fighting money laundering and the financing of terrorism, the EDBI official said: “For example, according to these rules, the beneficiaries of letters of credit in the third-party country must be clearly identified. In other words, a certain level of additional information is required.”

After the lifting of sanctions, major international banks are cautious and anxious about doing business with Iran, he said. “Banks that have reestablished links have limited their dealings to formerly-known clients.”

On relations with other development banks similar to the EDBI such as exim banks, the official said many deals are being officiated: “For instance, deals have been made in South Korea.” All things considered, he says, the recent developments are positive, “but we still have a long way to go to reach the desired point.”

 Helpful Instruments

The banker said the EDBI, in its recent operations, is opening LCs for imports from Austria. According to him, the LCs – used by the “metal and steel industries” – make for good financial instruments in the expansion and development of business. Previously, he said, these exports were undertaken without LCs.

“This way, new and modern international methods gradually replace older ones and we need to prepare the necessary groundwork to improve conditions.”

Admitting that on a supervisory and adaptive platform – such as upgrading rules for curbing money laundering – there has been a delay in creating the necessary infrastructure in line with guidelines of international banks, Ma’boodi expressed hope that with improved standards and reforms, banking links would be expand with the outside world.

“However it must be noted that political issues play a key role in the process of reviving banking ties,” he said without elaboration.